EUR/USD is trading in the green at 1.1781 and it could challenge the immediate upside obstacles as the DXY drops right now. Dollar Index's larger decline should push EUR/USD higher. We have a strong negative correlation between these two.
EUR/USD stands within a Falling Wedge pattern. Activating this pattern signals an important leg higher. The German Ifo Business Climate will be released later and could bring life to this pair.
The economic indicator is expected at 102.3 versus 101.8 which could be good for Euro. The pair is driven by pre-FOMC sentiment, factors. Technically, the Dollar Index is still under strong pressure in the short term.
This week, the CB Consumer Confidence, FOMC meeting, and the Advance GDP could shake the markets and could bring sharp movements.
EUR/USD Strong Demand Zone!
EUR/USD failed to approach and reach the Falling Wedge's support, so it could reach the downtrend line soon. It stands above the 88.6% retracement level which is seen as static support.
The pair has shown oversold signals, but only a valid breakout through the downtrend line and above the 50% Fibonacci line could validate an upwards movement, bullish reversal.
On the other hand, staying below these upside obstacles could lead to new downside momentum. EUR/USD moves sideways, so we don't have a trading signal right now. Personally, I really believe that we'll have a fresh opportunity soon.
Trading Conclusion!
We may have a great buying opportunity if EUR/USD escapes from the Falling Wedge's pattern and if it jumps above the 1.1824 level. The major upside target is seen at the descending pitchfork's upper median line (UML).
